Benjamin Company Benjamin Company produces two products from a joint process: X and Z. Joint processing costs for this production cycle are $8,000. Yards Sales price per yard at split-off Disposal cost per yard at split-off Further processing per yard Final sale price per yard X 1,500 $6.00 $3.50 $1.00 $7.50 Z 2,200 9.00 5.00 3.00 11.25 If X and Z are processed further, no disposal costs will be incurred or such costs will be borne by the buyer. Refer to Benjamin Company. Using sales value at split-off, what amount of joint processing cost is allocated to Product Z (round to the nearest dollar)? Select one: a. $2,500 b. $4,000 c. $5,500 d. $4,757
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Benjamin Company
Benjamin Company produces two products from a joint process: X and Z. Joint processing costs for this production cycle are $8,000.
| Yards | Sales price per yard at split-off |
Disposal cost per yard at split-off |
Further processing per yard |
Final sale price per yard |
|
|---|---|---|---|---|---|
| X | 1,500 | $6.00 | $3.50 | $1.00 | $7.50 |
| Z | 2,200 | 9.00 | 5.00 | 3.00 | 11.25 |
If X and Z are processed further, no disposal costs will be incurred or such costs will be borne by the buyer.
Refer to Benjamin Company. Using sales value at split-off, what amount of joint
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